Question Detail

Reema took a loan of Rs 1200 with simple interest for as many years as the rate of interest. If she paid Rs. 432 as interest at the end of the loan period, what was the rate of interest.

Answer: Option B

Explanation:

Let rate = R% then Time = R years.
\begin{aligned}
=> \frac{1200*R*R}{100}=432 \\
=> R^2 = 36 \\
=> R = 6\%

\end{aligned}

1. A financier claims to be lending money at simple interest, But he includes the interest every six months for calculating the principal. If he is charging an interest of 10%, the effective rate of interest becomes.

10.25%
10%
9.25%
9%

Answer: Option A

Explanation:

Let the sum is 100.

As financier includes interest every six months., then we will calculate SI for 6 months, then again for six months as below:

SI for first Six Months = (100*10*1)/(100*2) = Rs. 5

Important: now sum will become 100+5 = 105

SI for last Six Months = (105*10*1)/(100*2) = Rs. 5.25

So amount at the end of year will be (100+5+5.25)
= 110.25

Effective rate = 110.25 - 100 = 10.25

2. If a sum of money doubles itself in 8 years at simple interest, the ratepercent per annum is

12
12.5
13
13.5

Answer: Option B

Explanation:

Let sum = x then Simple Interest = x

Rate = (100 * x) / (x * 8) = 12.5

3. What is the present worth of Rs. 132 due in 2 years at 5% simple interest per annum

Answer: Option B

Explanation:

Let the present worth be Rs.x
Then,S.I.= Rs.(132 - x)

=› (x*5*2/100) = 132 - x

=› 10x = 13200 - 100x

=› 110x = 13200

x= 120

4. A lent Rs. 5000 to B for 2 years and Rs 3000 to C for 4 years on simple interest at the same rate of interest and received Rs 2200 in all from both of them as interest. The rate of interest per annum is

Answer: Option B

Explanation:

Let R% be the rate of simple interest then,

from question we can conclude that

\begin{aligned}
(\frac{5000*R*2}{100}) + (\frac{3000*R*4}{100}) = 2200 \\

<=> 100R + 120R = 2200 \\
<=> R = 10\%

\end{aligned}

5. There was simple interest of Rs. 4016.25 on a principal amount at the rate of 9%p.a. in 5 years. Find the principal amount

Rs 7925
Rs 8925
Rs 7926
Rs 7925

Answer: Option B

Explanation:

\begin{aligned}
P = \frac{S.I. * 100}{R*T}
\end{aligned}

So by putting values from our question we can get the answer

\begin{aligned}
P = \frac{4016.25 * 100}{9*5} \\
= 8925
\end{aligned}